Loan Frequently Asked Questions

What interest rates do churches pay on loans?

Interest rates may vary. Please call us at 1-800-543-2343 or email us for the latest rates.

Does Church Investors Fund make loans to any kind of church?

No. Church Investors Fund lends money to Baptist and like-minded churches and ministries for the acquisition, construction and remodeling of churches, parsonages and other projects.

Why should I borrow from Church Investors Fund?

Much of the interest paid on a loan with Church Investors Fund goes back into our churches and individuals within our churches. The funds loaned are made available because churches and individuals within our conference believe in investing for a cause that reflects their values. Many times, there are investors within the borrowing church that are loaning the funds.

How much of the construction cost can I borrow?

We typically lend up to 70%-80% of the total cost of a project, whether new construction or renovations.

Is there an origination fee on new loans?

Yes. The loan origination fee is between 0.5% and 1.00% of the amount borrowed, depending on the country.

What type of amortization do you offer?

Our loans are typically amortized for a maximum of 25 year period.

What type of term structure do you offer?

Our loans come with an initial 10-year term, which have two 5-year fixed rate periods. The interest rate is set on the first day of each 5-year period. Upon maturity, the loan is then re-evaluated and may renew for a 3 or 5-year term.

Do I need an appraisal for a loan?

We typically require an appraisal. However, on smaller loans we often waive the need for an appraisal.

Is there a prepayment penalty for early pay down?

No. There is no prepayment penalty for early paydown of principal when the money is raised from within the church.

Do I need to provide financial statements?

Yes. Financial Statements for the past 3 to 4 years is typically required.

Do we pay interest and principal during the construction phase?

No. During the construction stage of a new project, only interest payments are made. Upon completion of the project, the loan is modified to include principal and interest in the payment.

Does Church Investors Fund give personal loans?

No. We are limited to working with like-minded non-profit corporations.

What should our church do if we are thinking about building?

It is important that the church contact professional counsel in areas of architecture, construction, finance, etc. as early in the process as possible. You should also contact us so that we can assist you and prepare in making the necessary plans.